INVESTING & WEALTH BUILDING
This section answers real questions about investing in Nigeria. Learn how to invest in stocks market, treasury bills, bonds, NIDF, Commecial Papers and other opportunities. Whether you are a beginner or experienced, you will find simple guidance to grow your money.
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What Are the Best Stocks to Buy Now for Profit Within 6 Months?
What are the steps to follow to buy a share or stock fory one year daughter
What are the steps to follow to buy a share or stock fory one year daughter
See lessIs Fidelity Bank Stock a Good Investment for Short-Term Growth in Nigeria?
First, what does "buying a stock" even mean? When you buy Fidelity Bank stock, you're buying a tiny piece of ownership in that bank. If the bank grows and makes more money, your piece becomes worth more. If it struggles, your piece loses value. Simple. What does N100,000 actually buy you? Fidelity BRead more
First, what does “buying a stock” even mean?
When you buy Fidelity Bank stock, you’re buying a tiny piece of ownership in that bank. If the bank grows and makes more money, your piece becomes worth more. If it struggles, your piece loses value. Simple.
What does N100,000 actually buy you?
Fidelity Bank shares are currently trading around ₦19–21 per share on the Nigerian Stock Exchange. So with N100,000 you’d own roughly 4,700 to 5,200 shares. Not bad for a start.
Is the stock performing well? 📊
Honestly — yes, the business itself is growing fast. In 2024 alone:
Revenue grew by over 124%
Profits grew by 179%
Those are strong numbers. Analysts believe the share price could rise to around ₦23–₦28 within the year. If you bought at ₦19 and it hits ₦28, that’s roughly 47% profit on your N100,000 — meaning you’d walk away with around N147,000.
- On top of that, Fidelity Bank paid a 12% dividend in 2024 — meaning they share part of their profits with shareholders every year just for holding the stock.
See lessWhat Type of Stocks Are Recommended for Beginner Muslim Investors?
Before any stock type, every Muslim investor must pass candidates through Shariah screening. A stock fails if the company's core business involves: Alcohol, tobacco, or pork Conventional banking/insurance (interest-based) Gambling or adult entertainment Weapons manufacturing Some scholars also screeRead more
Before any stock type, every Muslim investor must pass candidates through Shariah screening. A stock fails if the company’s core business involves:
Alcohol, tobacco, or pork
Conventional banking/insurance (interest-based)
Gambling or adult entertainment
Weapons manufacturing
Some scholars also screen for debt ratio — if a company’s debt is more than 33% of its total assets, some Shariah boards consider it impermissible due to excessive leverage on interest.
Stock Types Recommended for Muslim Beginners
1. Dividend-Paying Halal Stocks (Best Starting Point)
Companies in sectors like consumer goods, agriculture, telecoms, and manufacturing that pay regular dividends. On the NGX, examples include:
Dangote Cement — manufacturing, low debt
BUA Foods — agriculture/FMCG
Nestle Nigeria — consumer goods (screen carefully for product lines)
MTN Nigeria / Airtel — telecoms
These give you income + capital growth without interest exposure.
2. ETFs (Exchange Traded Funds) — Halal Screened
For a true beginner, individual stock picking is risky. A Halal ETF bundles pre-screened stocks together so you’re automatically diversified. Globally, look at:
Wahed FTSE USA Shariah ETF (HLAL)
SP Funds S&P 500 Sharia ETF (SPUS)
Nigeria doesn’t have a dedicated Halal ETF yet — but you can access global ones through platforms like Bamboo or Chaka which allow Nigerians to invest in US markets.
3. Sukuk Bonds (Islamic Alternative to Fixed Income)
Not a stock, but worth mentioning for beginners who want low-risk, stable returns. Sukuk are Shariah-compliant bonds — instead of paying interest, they give you a share of asset-backed profits. The Federal Government of Nigeria has issued Sukuk bonds specifically for infrastructure funding. These are excellent for Muslim beginners who want safety first.
4. REITs — Real Estate Investment Trusts (With Screening)
If you love real estate (which you do), REITs let you invest in property without buying land. Some are Shariah-compliant. On the NGX, UPDC REIT is worth researching. Screen for debt levels and income sources before entering.
See lessCan I Receive Dividends without Filling E-Dividend Mandate?
Yes, you can receive your dividend without filling e-dividend form, unless your registrar request you to do so if need be.
Yes, you can receive your dividend without filling e-dividend form, unless your registrar request you to do so if need be.
See lessWhat is the Difference between ETF'S and EQUITY FUND?
The difference between ETF and equity fund is mainly how they are managed and how you buy and sell them. An ETF which means Exchange Traded Fund is traded on the stock exchange just like a normal stock. You can buy and sell it anytime during market hours through a stockbroker. It usually tracks an iRead more
The difference between ETF and equity fund is mainly how they are managed and how you buy and sell them.
An ETF which means Exchange Traded Fund is traded on the stock exchange just like a normal stock.
You can buy and sell it anytime during market hours through a stockbroker.
It usually tracks an index like the Nigerian stock market or a basket of stocks, and it is passively managed, meaning it follows a rule instead of active decision making.
An equity fund is a type of mutual fund that invests mainly in stocks but is actively managed by a professional fund manager. The manager makes decisions on which stocks to buy or sell with the aim of outperforming the market.
For Example:
an ETF is like joining a group where everyone follows a fixed recipe to cook ogbono soup.
They follow the same ingredients and method every time without changing much. Equity fund is like having a skilled cook who decides the ingredients, adjusts the taste, and tries to make the best soup possible.
So… ETF gives you market tracking with lower management involvement, while equity fund gives you professional active management with the possibility of higher returns but also depends on the Fund Manager’s skill.
Both can help you grow wealth, but the choice depends on whether you prefer a simple rule based investment or a professionally managed one.
See lessWhat is the Best investment direct Stock brokerage app in Nigeria?
There is no single “best” brokerage app for everyone in Nigeria. The best one for you depends on ease of use, reliability, access to Nigerian stocks, and how well you understand the platform. As a beginner, you should focus on licensed Nigerian stockbrokers and investment apps that connect you to thRead more
There is no single “best” brokerage app for everyone in Nigeria. The best one for you depends on ease of use, reliability, access to Nigerian stocks, and how well you understand the platform.
As a beginner, you should focus on licensed Nigerian stockbrokers and investment apps that connect you to the Nigerian Exchange.
Some commonly used and beginner friendly platforms include Zedcrest, InvestNaija by Chapel Hill Denham, Stanbic IBTC Stockbrokers, and ARM Securities.
These platforms allow you to buy Nigerian stocks, monitor your portfolio, and manage your investments from your phone. They are regulated and connected to the CSCS system where your shares are kept safely.
Imagine Mama Ngozi wants to start a small trading business.
Instead of choosing based on hype, she goes to a trusted market where known traders operate, learns how they work, and starts with one she understands.
Over time, she becomes more experienced and can explore other options. That is how choosing a brokerage platform should be.
As a beginner or short term investor, what matters most is not just the app, but your understanding of the market, your entry timing, and your risk management. A good app will give you access, but your knowledge will determine your results.
The best brokerage app is the one that is easy for you to use, properly regulated, and supports your learning journey.
See lessStart with one platform, learn how it works, and grow from there instead of jumping between many apps without understanding how investing works.
How do you take Profit on Equity Fund and Balanced Fund?
In equity funds and balanced funds, profit works differently from buying and selling individual stocks. When you invest in a mutual fund, your money is pooled together with other investors and managed by a professional fund manager. The profits made from the investments are usually reflected in theRead more
In equity funds and balanced funds, profit works differently from buying and selling individual stocks.
When you invest in a mutual fund, your money is pooled together with other investors and managed by a professional fund manager. The profits made from the investments are usually reflected in the unit price of the fund, called the Net Asset Value.
As the investments in the fund grow, the value of your units increases automatically. So your profit is already inside the value of your investment. You do not need to wait for dividends like in some stocks before seeing growth.
To take profit, you simply redeem or withdraw part or all of your investment through the platform you used, such as Stanbic IBTC Asset Management or ARM Investment Managers or InvestNaija. When you withdraw, you are selling your units at the current value, and your profit is included in that amount.
Using Mama Ngozi as an example, imagine she joins a group where her money is used to trade goods.
As the group makes profit, the value of her share in the group increases. She does not need to collect the profit separately every time. When she decides to leave the group or withdraw part of her money, she receives her original contribution plus all the growth it has accumulated.
In mutual funds, your profit is not usually taken as cash automatically into your pocket. It stays inside the investment and grows through compounding until you decide to withdraw.
So profit is taken by selling or redeeming your units, and not by waiting for a separate payout in most cases.
See lessWhat are the best stocks to buy for a beginner in 2026?
You don't need recommended stock, you need skill to learn so that you will understand which stock to put for good leverage.
You don’t need recommended stock, you need skill to learn so that you will understand which stock to put for good leverage.
See lessHow can i Buy Dangote Refinery IPO ?
As of now, there is no confirmed date yet for the Dangote Refinery IPO. Even though it is being discussed on social media and Mr Aliko Dangote has mentioned it, the exact timing has not been officially announced. So the best thing to do is to stay patient and wait for official information. When theRead more
As of now, there is no confirmed date yet for the Dangote Refinery IPO. Even though it is being discussed on social media and Mr Aliko Dangote has mentioned it, the exact timing has not been officially announced. So the best thing to do is to stay patient and wait for official information.
When the IPO is finally released, it will be through official channels, and it will not be a hidden opportunity. Your stockbroker will usually notify you, and the Nigerian Exchange will also publish the information.
To prepare ahead, you should already have a stockbroker account and a CSCS account. This is very important because that is where your shares will be stored when allotted.
You can also monitor updates directly from the Nigerian Exchange website and even create an account on the NGX Invest platform at invest.ngxgroup.com. On that platform, you will see subscription opportunities under the issues and offers section. But again, you must already have your CSCS account linked through a stockbroker before using such platforms.
A simple truth is that IPOs like this require preparation, not urgency. If you are ready with the right accounts and stay informed through official channels, you will be able to participate smoothly when it is officially open.
See lessHow do one understand the consolidation period of a stock?
Consolidation period simply means a time when a stock is moving sideways, not going up or down strongly. During this period, the price stays within a small range because buyers and sellers are balanced. What is happening behind the scenes is demand and supply trying to find a new direction. Buyers aRead more
Consolidation period simply means a time when a stock is moving sideways, not going up or down strongly. During this period, the price stays within a small range because buyers and sellers are balanced.
What is happening behind the scenes is demand and supply trying to find a new direction. Buyers are not strong enough to push the price higher, and sellers are not strong enough to push it lower, so the price keeps moving within a narrow range.
Let me borrow Mama Ngozi from Mr. Iking Ferry to explain this better.
Imagine Mama Ngozi is selling tomatoes in the village.
At some point, the price of tomatoes becomes stable because the number of people buying and the number of tomatoes available are balanced.
The price is not increasing or decreasing much. That is like consolidation. But after some time, if more buyers enter the market or supply reduces, the price may start to move up or down again.
In stock market terms, consolidation often happens before a major move. It is like the market is taking a break before deciding its next direction.
in simple terms:
See lessConsolidation is a period of balance where the market is gathering strength. Once demand or supply becomes stronger, the price will eventually break out of that range either upward or downward.